YTD Stock and Bond Market at a Glance – Party’s Over?

While stocks have had a raucous time this year, bonds continued to be the designated driver – the safe place where stock investors hid until the stock market became a less of an underground rave and more of an uplifting Karaoke party.

But don’t think that the bond market didn’t also have a great time this year.

Here’s a quick comparison of how the main classes of bonds are performing YTD vs. the US stock market and emerging markets:

YTD returns in the US stock market still outrank the majority of bonds – which shouldn’t be a surprise in a presidential incumbent reelection year. However, it’s notable how well municipal bonds performed YTD. High yield corporate bonds’ number, in particular, may be up – those values may be due to fall in 2013.

In my last BlogTalkRadio broadcast, I covered why bond values may fall in 2013. However, with domestic and international challenges over the next two years (including an unwinding war and post-fiscal cliff US economy), the party may be over in the 2013 stock market and your portfolio may need to turn to a bond designated driver.

The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. Any such offer, if made, will only be made by means of a confidential prospectus or offering memorandum or management agreement. It it not our intention to state, indicate or imply in any manner that current or past results are indicative of future results or expectations. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment.

About The Wall Street Geek

After turning $1100 into $7015 in the stock market right out of college, the author of "The Wall Street Geek" worked for 15 years on Wall Street. In this investment blog, she gives investment tips and insights to help everyday investors be successful. Read More >>

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